(and Why You Should Care Now)
“If we got hit by ransomware, would we pay the ransom?”
It’s a tough question. But with the UK Government proposing a legal ban on ransomware payments, it’s no longer hypothetical. Even if your business won’t be directly included in the legislation, the impact could still be significant and sooner than you think.
So what’s happening, why is it happening, and most importantly, what should SMEs be doing to get ahead of it?
The Government’s Ransomware Crackdown: A Quick Overview
In January 2025, the Home Office launched a public consultation on banning ransomware payments. The initial focus is on the public sector and Critical National Infrastructure (CNI), including sectors like healthcare, energy, finance, transport and emergency services.
The goal is to cut off the cashflow cybercriminals rely on. But if public organisations stop paying, it’s likely that attackers will turn their attention to commercial businesses where ransoms can still be demanded. That puts SMEs directly in the firing line.
Why Should SMEs Care If They’re Not in the Firing Line Yet?
Even if the law doesn’t name your business, you still need to pay attention. Here’s why:
1. Ransomware Doesn’t Stick to Boundaries
Hackers don’t check if you’re on a government list before launching an attack. Once public bodies become harder targets, criminals are expected to look for easier options. That could be you.
2. SMEs Are Often Unprepared
According to government figures:
- Only 22% of UK businesses have a formal incident response plan
- 43% experienced a cyber breach or attack in the last 12 months
- Most SMEs lack the budget for high-end cyber insurance or recovery support
3. Reporting Rules Are Coming
If the proposals go ahead, some organisations may be required to report ransomware attacks within 72 hours. That’s a tight turnaround, especially if your business doesn’t have a clear process or the technical support to respond quickly.
The Shift Away from Paying Up
The real aim of the proposal is to push all organisations to stop relying on ransom payments as an emergency fix. Instead, the focus is shifting to prevention, preparation and recovery.
This shift is especially important for SMEs, who may not have the resources to recover quickly from a serious attack. The days of paying the ransom and moving on quietly are coming to an end.
What Should SMEs Do Right Now?
The government’s consultation is a wake-up call. Whether the law touches your business or not, this is the perfect time to take stock and strengthen your cyber resilience.
Here are four practical steps to start with:
Review Your Cyber Security Setup
Check your protection across all areas including endpoints, cloud platforms, remote access, email filtering and employee habits. Identify and fix weak spots.
Create or Update Your Incident Response Plan
Who needs to act in the first 24 hours after an attack? What systems need to be recovered first? If you don’t have answers to those questions, now’s the time to put a plan in place.
Plan for a No-Payment Scenario
Assume paying a ransom won’t be possible. Make sure your backups are reliable, your systems are monitored in real-time, and multi-factor authentication is in place across accounts.
Get a Trusted IT Partner on Board
Security isn’t just about tools. It’s about making the right calls when it matters most. Nxt Gen IT supports businesses with Cyber Essentials, 24/7 monitoring, and rapid incident response to keep your team protected and prepared.
One Concern: What Help Will Be Available?
Many smaller businesses are worried they’ll be left to fend for themselves. As it stands, there’s no clear government plan to support organisations that can’t pay and can’t recover quickly.
Industry voices are calling for:
- State-backed decryption support
- Emergency recovery funds
- Affordable cyber insurance alternatives
- Coordinated response support
Whatever comes from the consultation, it’s clear that relying on last-minute help is a risky gamble.
Nxt Steps
The proposed ransomware ban is part of a bigger shift in UK cyber policy. Whether you’re directly affected or not, it’s a signal that things are changing.
Now is the time to prepare your business for a world where cyberattacks are more frequent, more damaging and harder to ignore.
Book your free Cyber Health Check with Nxt Gen IT today. We’ll help you identify vulnerabilities, test your response readiness and build a security strategy that fits your size, budget and risk level.
Let’s get ahead of ransomware before it gets ahead of you.
Nxt Gen IT is here to help you stay one step ahead.
Protect your business. Strengthen your defences. Don’t wait until it’s too late.
Reach out to Nxt Gen IT today.
Ben helps growing businesses turn technology into a driver of performance instead of a barrier. At Nxt Gen IT he works with SME leaders, recruiters, and fast-scaling teams to design solutions that improve reliability, strengthen security, and unlock growth.
With a background in email deliverability and cloud systems, Ben specialises in making sure businesses communicate effectively, keep data safe, and get the most from Microsoft 365. His experience spans solution design, managed IT services, and virtual CIO support, always with a focus on practical outcomes that reduce headaches for business owners.
Ben has supported organisations across the UK, from recruitment agencies struggling with inbox placement to SaaS firms scaling fast, and SMEs needing a trusted partner for their IT. He believes tech is never the end goal: growth is. His role is to make sure technology never gets in the way of it.